Karoon Energy, an oil producer focused on Brazilian operations, has reported a 61 per cent drop in net profit before one-time items for the first half of the year. The decline was attributed to lower prices and reduced sales volumes. The Melbourne-based company’s underlying net profit decreased to $US45 million ($69.3 million) for the six months ending June 30, a notable drop from $US115.8 million in the prior corresponding period. Statutory net profit, however, saw a 15 per cent increase to $US71 million, up from $US61.8 million a year earlier, despite sales falling 25 per cent to $US308.3 million. Karoon Energy is an international oil and gas exploration and production company with a primary focus on Brazil. The company is dedicated to growing its production through both organic means and strategic acquisitions.
Despite the profit downturn, Karoon Energy announced an increase in estimated reserves at its Baúna project in Brazil’s offshore Santos Basin. Reserves at the field are now estimated to be 35 per cent higher than they were at the end of 2024, even after accounting for production since then. Since Karoon acquired the venture in November 2020, the estimated volumes of oil to be extracted have more than doubled.
The economic life of the Baúna field has also been extended by seven years to 2039. Karoon has commenced an investment project to facilitate production for a longer duration, involving spending between $US55 million and $US65 million this year and between $US80 million and $US90 million over 2030-34. In light of these results, the junior producer declared an interim dividend of 2.4¢ a share, down from 4.496¢ at the same time last year.
Outgoing CEO Julian Fowles, who is slated to leave Karoon by mid-2026 when key corporate roles will be shifted to Brazil and the US, stated that Karoon had entered the second half of 2025 with “strong operational momentum” and clear priorities. Earlier in the week, Karoon slightly upgraded its guidance for production this year, despite an electrical fault that has temporarily reduced production at a well at Baúna.
